UPI Revolutionizes Insurance Premium Payments in India: Over One-Third Now Digital

More and more people in India are now choosing to pay for their insurance using UPI (Unified Payments Interface), moving away from older, traditional payment methods. According to data from Policybazaar, UPI now makes up over one-third of all insurance premium payments. 

In health insurance, payments made through UPI have gone up by 34%, and now account for 25% of all payments in that category. For term insurance, UPI use increased by 25%, and it already covers 36% of the payments. The biggest growth was seen in investment-plus-insurance plans, where UPI payments jumped by over 45% in the financial year 2025. 

Other payment methods like net banking still have a place, especially during tax season. During this period, payments for term and investment plans through net banking rose sharply—by 290% and 306% respectively. 

Paying monthly is becoming popular. Health insurance saw a massive 307% rise in monthly payments, followed by investment-linked products at 99% and term insurance at 72%. 

Overall, these changes show that insurance buyers in India are leaning more towards quick, easy, and digital ways to pay. As UPI continues to grow, it’s expected to make financial services even more accessible and make insurance payments smoother for everyone.